“Gold hit a three-week high on Friday, buoyed by expectations U.S. monetary policy will remain loose after President Barack Obama’s re-election and by a looming “fiscal cliff” that could slash U.S. public spending.”

“Since the U.S. elections on Tuesday, investors have become worried that Washington’s politicians may struggle to find a compromise to cut the budget deficit before nearly $600 billion worth of spending cuts and tax increases kick in early in 2013.

The euro dropped to a two-month low against the dollar on Friday and could extend losses as fears mounted that the euro zone’s debt crisis and deteriorating economic conditions could drag down global economic growth.”

“Gold prices rose on Wednesday after Obama’s re-election gave markets a boost by ending weeks of uncertainty and has since extended gains as concerns over the fiscal cliff have intensified.

China’s economy strode further along the road of recovery from its slowest growth in three years, data for October showed on Friday, as infrastructure investment accelerated and output from factories ran at its fastest in five months.”

“Gold importers in India, the world’s biggest buyer of bullion, paused in making purchases ahead of festivals next week as a weaker rupee pushed up the gold price for Indian buyers.

Spot platinum traded up more than one percent to about $1,560 an ounce. Spot palladium traded down about 0.30 percent above $610 an ounce. Silver popped up about 0.70 percent to $32.50 an ounce.”

To Read Full Article: http://www.cnbc.com/id/49753121

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